How do I reclaim Saudi Arabia WHT as a UK LLP?

After completing work in SA we have an outstanding debtor and WHT certificate - what now?

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I work for an LLP who did some work in Saudi Arabia.  They didn't pay the invoice in full and are issuing us a WHT certificate now that the work is done.  We have a  DTT with Saudi Arabia so we think we can reclaim the tax but as an LLP we currently have the outstanding debtor in our books which we will never receive cash for and don't have a tax liability to net it off against.  

We are hoping that the partners can net the WHT off their own personal tax liability. 

Which leaves the double entries in the LLP accounts.  Do I just Cr the Debtor and Dr the partners drawings as they are receiving the benefit?  

Has anyone come across this or know the answer?  

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By Matrix
16th Apr 2024 20:35

Depending on the amounts involved, I would get tax advice on this and see if the tax can be reclaimed locally. If it is not worth doing so then look into whether you can get a deduction (so write off). A credit would only be allowed if Saudi Arabia is permitted to tax the income per the treaty and more details/bespoke advice would be required. I certainly wouldn’t be booking it to the partners’ accounts unless you have advice that the paperwork and the treaty support the credit.

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